Right now there is a rapidly increasing number of foreign investors looking to break into the Detroit real estate market. This is quite surprising news for some people who have the misconception that Detroit is struggling to recover from the effects of the economic downturn that caused the economy to bottom in 2010. In actual fact there has never been a better time to invest in one of our turnkey properties for sale in Detroit.
Here are just a few reasons why foreign investors should be looking to secure a USA property investment in Detroit, Michigan.
Detroit Offers High Investment Returns
Compared to other USA property investment hotspots, Detroit is currently delivering some of the highest investment returns available in the US market. This is in no small part due to the below market value prices that properties in the area can be bought for, and is very apparent in the capitalisation rates.
Often referred to as cap rates, capitalisation rates are calculated by dividing the total value of the real estate or property by the current income it is generating. While places like New York and Miami are delivering a capitalisation rate of around 5 percent, Detroit is delivering around 7.75 percent. It’s no wonder then that foreign investors are so interested in real estate in Detroit, and particularly in fully managed single family homes such as our turnkey properties for sale.
Turnkey Properties for Sale in Detroit are in Demand
There are several areas of Detroit that are extremely popular, mainly because of their local historical significance. In areas like Sherwood Forest, Hubbard Farms, and Woodbridge, the demand for real estate is currently significantly higher than the supply. Suburban Detroit for instance saw a 13% increase in sales over the course of the last year alone.
Naturally with there being such a high demand in areas like this, finding and securing a property can be a little tricky. If you are patient and persistent though, you could get hold of some valuable real estate that can deliver a great return extremely quickly. At New World Property Investment we have done the hard work for you and have been able to source a number of highly exclusive turnkey properties for sale. We expect for these to be extremely popular with both investors looking to make their first overseas property investment and also those investors that are perhaps more experienced in investing in property abroad.
The USA Property Investment Market is Recovering
The future looks promising for the Detroit real estate market. While growth has been slow in the city, the value of the property investment market has been consistently increasing in Detroit’s suburbs. The economy and real estate markets are more stable now than they were before the 2008 market crash, and property experts and outside observers alike expect the growth we are seeing to continue.
At the moment there are still great deals available in the area and hence opportunities exist for investors to make significant capital gains and returns on investment as these properties continue to increase in value; and with 69% of residents in Detroit’s suburbs now rating their financial situation as good or excellent, the demand from new residents and tenants for quality housing continues to rise. It is no surprise then that more and more people are now migrating and moving to Detroit and this is reflected in the amount of new investment into the city. The state has added nearly half a million jobs since its economy bottomed in 2010 with an influx of jobs and investment into the local area by companies like General Dynamics, Delphi and BorgWarner.
If current trends continue then Detroit will become one of the best places within the US to own real estate, particularly for foreign investors. Furthermore, with any of our industry-leading Detroit real estate investments, high rental yields can be achieved immediately after you make your investment. Our properties have not only been completely renovated, but they come with fully vetted professional and qualified tenants making them a great hands-free and hassle-free investment.
If you want to take this golden opportunity to invest in Detroit, Michigan then get in touch with us now to find out more.